Correlation Between Ningbo GQY and King Strong
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By analyzing existing cross correlation between Ningbo GQY Video and King Strong New Material, you can compare the effects of market volatilities on Ningbo GQY and King Strong and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ningbo GQY with a short position of King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo GQY and King Strong.
Diversification Opportunities for Ningbo GQY and King Strong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and King is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo GQY Video and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New and Ningbo GQY is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ningbo GQY Video are associated (or correlated) with King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Ningbo GQY i.e., Ningbo GQY and King Strong go up and down completely randomly.
Pair Corralation between Ningbo GQY and King Strong
Assuming the 90 days trading horizon Ningbo GQY Video is expected to generate 1.24 times more return on investment than King Strong. However, Ningbo GQY is 1.24 times more volatile than King Strong New Material. It trades about 0.03 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.01 per unit of risk. If you would invest 602.00 in Ningbo GQY Video on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Ningbo GQY Video or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo GQY Video vs. King Strong New Material
Performance |
| Timeline |
| Ningbo GQY Video |
| King Strong New |
Ningbo GQY and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo GQY and King Strong
The main advantage of trading using opposite Ningbo GQY and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo GQY position performs unexpectedly, King Strong can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in King Strong will offset losses from the drop in King Strong's long position.| Ningbo GQY vs. Shandong Mining Machinery | Ningbo GQY vs. Fujian Oriental Silver | Ningbo GQY vs. Harbin Air Conditioning | Ningbo GQY vs. Tibet Huayu Mining |
| King Strong vs. Agricultural Bank of | King Strong vs. Industrial and Commercial | King Strong vs. Bank of China | King Strong vs. PetroChina Co Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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